SCOTS families are spending a third of their income on childcare with costs spiralling to more than £5,000 a year, a report has revealed.

Citizens Advice Scotland said the average cost of putting a child aged between two and five in nursery for 25 hours a week is £5,307 a year, with this rising to £5,514 for under-twos.Nursery bills for those aged over two have risen by 8.2 per cent in the last year “considerably above inflation”, it added.

Holyrood passed legislation earlier this year to increase the amount of free childcare from 475 hours a year to 600 hours for three and four-year-olds, and disadvantaged two-year-olds.

But a report from Citizens Advice Scotland said: “The increase to 600 hours of free early education will be of benefit to some working parents, but would only cover six months of the year at 25 hours per week, estimated to be the typical amount that a parent working part-time might require, so will not cover full costs.” It added that “for working parents the costs of childcare can be a route to in-work poverty”.

Childcare isn’t working for far too many families. And many parents who want to work can’t get childcare

Citizens Advice Scotland policy manager Keith Dryburgh

Scottish parents spend an average of 27 per cent of their household income on childcare, the report said, compared to an average of 12 per cent across other developed countries. Citizens Advice Scotland has now called on the Scottish Government and local councils to “work together to ensure that suitable, affordable childcare is provided for working parents in all areas of Scotland.”

The Government should also consider introducing a statutory right to childcare, it suggested.

Citizens Advice Scotland policy manager Keith Dryburgh said: “Childcare has become a more high-profile issue, and rightly so. If we get it right, the whole Scottish economy will benefit, as well as the families directly concerned. However, the evidence from Scotland’s CAB service is clear: childcare isn’t working for far too many families. And many parents who want to work can’t get childcare.”

Scottish Liberal Democrat leader Willie Rennie called for the creation of a new childcare taskforce to help deliver plans using powers expected with further devolution.

Minister for Children and Young People Aileen Campbell said she was aware that childcare costs are a big outlay for most families.

She said: “The Children and Young People Act now requires local authorities to consult with groups of parents at least once every two years on patterns of childcare provision which would best meet their needs.

“This should introduce a greater level of flexibility and choice in to the system as we work with local government to further develop and expand provision.”